Micro Biz on verge of collapse whilst waiting for an insurance payout

benhess89

Loaf.my is a micro-business founded in lockdown. We have an insurance policy with Simply Business underwritten by AXA.

On the 12th March 2022 our coffee shop was broken into for the second time in 13 months (the first was relatively minor but still a setback for a new business). Our insurance claim to cover the circa £15k damage was filed on this date and the window boarded up by the insurers.

A small fundraiser setup by the local community covered about a week's worth of takings, which we've made stretch as far as possible - and then some.

Since the date of the break in, we still haven't had a penny, nor heard anything at all. I call daily and am told it's with the underwriters and that's the same update I've had for months now. Every single one of the 17 promises of a callback has been broken.

We have a coffee shop without a coffee machine and still have a boarded up window. We've done a lot of the repairs we can ourselves. I have been told everyday for the past 8 weeks that the underwriters are being chased by email weekly but there is no further escalation process. I filed a complaint 4 weeks ago with both businesses and have spoken with the FOS today. I cannot speak with anyone at AXA who can find my policy, let alone my claim or complaint. Simply Business simply send them emails.

We have to wait another 4 weeks before the FOS can start to look at the complaint, and because of a backlog I've been advised even this will likely take longer.

We have had no income for 15 weeks, and counting. If we close the FOS can't look at the complaint. Any payout we get will be of no use and will likely stay with the insurers.

I have had to layoff staff. I have rent arrears accruing (landlord is another small business). I have unpaid suppliers (many also small and micro businesses). I haven't paid myself anything near a salary since starting, and certainly nothing in the last few months. It's affecting me personally more and more each day. The business - a fully insured business - is on the verge of failing and no one can give me a reason why.

Anyone out there been in a similar position or have any advice on what to do in this circumstance, because I'm all out of options and watching a perfectly viable business fail as the days and weeks go by.

benhess89

Typo: the business is Loaf.ly

Apologies, not sure how to edit or delete and repost.

Grumpy_chap

benhess89 said:

Typo: the business is Loaf.ly

Apologies, not sure how to edit or delete and repost.

Are you based in Libya?
This is a UK-based forum, and most contributors can only comment from the context of a UK-based response.
Rules and custom and practice can vary between different geographies.

benhess89 said:

Loaf.my is a micro-business founded in lockdown. We have an insurance policy with Simply Business underwritten by AXA.

On the 12th March 2022 our coffee shop was broken into for the second time in 13 months (the first was relatively minor but still a setback for a new business). Our insurance claim to cover the circa £15k damage was filed on this date and the window boarded up by the insurers.

A small fundraiser setup by the local community covered about a week's worth of takings, which we've made stretch as far as possible - and then some.

Since the date of the break in, we still haven't had a penny, nor heard anything at all. I call daily and am told it's with the underwriters and that's the same update I've had for months now. Every single one of the 17 promises of a callback has been broken.

We have a coffee shop without a coffee machine and still have a boarded up window. We've done a lot of the repairs we can ourselves. I have been told everyday for the past 8 weeks that the underwriters are being chased by email weekly but there is no further escalation process. I filed a complaint 4 weeks ago with both businesses and have spoken with the FOS today. I cannot speak with anyone at AXA who can find my policy, let alone my claim or complaint. Simply Business simply send them emails.

We have to wait another 4 weeks before the FOS can start to look at the complaint, and because of a backlog I've been advised even this will likely take longer.

We have had no income for 15 weeks, and counting. If we close the FOS can't look at the complaint. Any payout we get will be of no use and will likely stay with the insurers.

I have had to layoff staff. I have rent arrears accruing (landlord is another small business). I have unpaid suppliers (many also small and micro businesses). I haven't paid myself anything near a salary since starting, and certainly nothing in the last few months. It's affecting me personally more and more each day. The business - a fully insured business - is on the verge of failing and no one can give me a reason why.

Anyone out there been in a similar position or have any advice on what to do in this circumstance, because I'm all out of options and watching a perfectly viable business fail as the days and weeks go by.

redped

Grumpy_chap said:

benhess89 said:

Typo: the business is Loaf.ly

Apologies, not sure how to edit or delete and repost.

Are you based in Libya?
This is a UK-based forum, and most contributors can only comment from the context of a UK-based response.
Rules and custom and practice can vary between different geographies.

Just because he's using a .ly domain doesn't mean he's in Libya ... the first line on https://loaf.ly/ says "Delivering across London's Royal Docks"

Grumpy_chap

Well, I didn't want to visit the website with an unusual domain suffix incase it was a scam and would magic some spyware / virus or other nasty into my PC.  I am not sure how many potential customers would think similarly.

JetpackVelociraptor

Have you tried talking to your bank about an overdraft or short term loan facility, to cover your costs until the insurance pays out?